Council predicts investment from new AI datacentre could create more than 5,000 jobs in Northumberland

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A £110 million fund agreed as part of the deal to build a new AI datacentre in Northumberland will bring more than 5,000 jobs to the county, according to council projections.

The cash will be provided by US investment firm Blackstone, after the company struck a deal that will see data subsidiary QTS build a vast datacentre on land at Cambois near Blyth.

The money will be paid to Northumberland County Council as various milestones on the development are met, with an initial £30 million expected next year.

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The authority’s Conservative administration has earmarked the money for job creation.

An artistic rendering of a typical data centre design for conceptual purposes. Photo: QTS/Northumberland County Council.An artistic rendering of a typical data centre design for conceptual purposes. Photo: QTS/Northumberland County Council.
An artistic rendering of a typical data centre design for conceptual purposes. Photo: QTS/Northumberland County Council.

Speaking at Tuesday’s meeting of the council’s cabinet, deputy leader Richard Wearmouth said: “The analysis we have had done by officer teams shows that, if we get this right, we will be able to create 5,500 full-time equivalent (FTE) jobs over the next 20 years.

“For every pound we invest, we’re getting an extra £7.50 leveraged in from other sources. It is anticipated we will have an additional 19 hectares of land in use and create 5,000 or so jobs in the construction industry.

“It is difficult to grasp the scale of what is going on here. The Blackstone-QTS deal is a fantastic deal for the county and all of this added benefit is really going to deliver change.

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“A large part is going to be spent on making sure we have enough land for development. We’re going to acquire more land where we are able and make sure those sites are ready, making sure they have grid and infrastructure connections.

“We’re also going to make sure we invest in our commercial properties so we have places where new businesses can establish themselves and set up.”

Further information is set to be provided to the cabinet in the coming months.

Cllr Guy Renner Thompson, the council’s cabinet member for education, has previously said he expected the council to look at investing in the county’s emerging clean energy sector. This would provide more jobs for learners at the new Energy Central Hub training facility in Blyth, the first phase of which welcomed the first learners at the start of the academic year.

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Cllr Wearmouth added: “This is a fantastic investment and gives us some money to spend to create the platform for more jobs and more investment. What we are very clear about in terms of this funding is it won’t be spend on the council’s everyday spending.

“We are able to live within our means – this will be entirely focused on creating jobs and investment and making sure residents benefit from that. We’re looking at increased economic activity, improved productivity and improved wages.”

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